Teck Resources stock price is set to surge today, Sep. 9, after reports of an impending buyout by Anglo American. TECK was trading at $35.11 in New York, down by over 35% from its highest point in 2024. It jumped by 24% in the extended hours.
Anglo American to acquire Teck Resources
The main catalyst for the Teck Resources stock is a report that Anglo American is in talk to acquire it. This deal, which Bloomberg first made, may be announced as soon as this week.
It will be the biggest mining deal in years, and it comes at a notable period for the two companies. Teck Resources rejected an acquisition bid by Glencore, noting that it grossly undervalued its business. Instead, the company offloaded its coal operations to Glencore.
Meanwhile, Anglo American rejected a $49 billion buyout from BHP Group. Today, it has a market capitalization of $34 billion after its stock plunged by over 23% from its highest point in 2024.
Still, it is unclear the amount that Anglo American will make for Teck Resources. Most importantly, it is unclear whether Teck’s founding family will agree to sell and the amount it will agree.
Teck Resources is seen as a crown jewel in mining
Teck, a Canadian company, is widely seen as being the crown jewel in the mining industry. It is a beloved firm because of its market share in the copper sector, which is expected to continue growing.
The most recent results showed that its adjusted EBITDA in the second quarter exceeded $722 million, thanks in part to its Trail operations.
Its adjusted profit for the quarter was $187 million. Most importantly, the company has continued to return funds to investors. It has returned about $1 billion to investors this year, and is in the process of buying shares worth $3.25 billion, a substantial amount for a company worth over $17 billion.
The company also expects its production to be steady this month. It expect to produce between 470,000 and 525,000 tons of copper this year and between 525,000 and 575,000 tons of zinc.
Teck Resources stock price analysis
The daily timeframe chart shows that the Teck stock price bottomed at $28.3 in April this year. It then rebounded to $42 in July and then pulled back as it launched its strategic review.
The Teck stock price has now jumped to $43 in the extended hour. It has moved above the important resistance at $42.37, it highest swing in July.
It has now moved above the 50-day and 100-day moving averages. It also jumped closer to the ultimate resistance level of the Murrey Math Lines.
Therefore, the stock will likely continue rising as bulls target the extreme overshoot point at $46.8. This surge will continue as investors wait for more details about the deal.
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